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IRS CLARIFIES FLOOD DISASTER TAX DEPOSIT DEADLINE

June 20, 2008

Responding to our query about some nonsensical dates in their Iowa flood disaster tax deadline relief web site, the IRS sent us the following (my emphasis):

Thank you for contacting the IRS Web Site Help Desk.
Thank you for notifying us of a typo in the article on Iowa flood relief (http://www.irs.gov/newsroom/article/0,,id=183404,00.html).

There is indeed a typo in the sentence you quoted. The sentence you sent us said: 'The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after May 25, 2008, and on or before June 28, 2008, provided the taxpayer made these deposits by June 9, 2008.' You suggested that the last date should read June 29 instead of June 9 to make sense. The correct sentence should have said: 'The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after May 25, 2008, and on or before June 9, 2008, provided the taxpayer made these deposits by June 9, 2008.' That is, it was the date of June 28 in the middle of the sentence that was incorrect, not the mention of June 9 at the end of the sentence, which is in fact the correct date. We have now corrected the text on the Web site.

Again, thank you for pointing out that there was an error in the sentence.

While that clarifies things, it's rather harsh. Many offices in Downtown Cedar Rapids, for example, were destroyed in the floods, and taxpayers are just now getting back to them more than a week after they went under. It's strange to cut off deadline relief just at the point Cedar Rapids was drowned.

For filings and tax payments other than payroll and excise tax deposits, taxpayers in Iowa disaster areas have until July 28 to make payments otherwise due between May 24 and July 28.

Tags: Floods.